Russia’s Gazprom, Germany’s E ON agree on gas price adjustment

Gazprom Export, a unit of Russia’s gas giant Gazprom, has signed an agreement to adjust the price of long-term contracts for Germany’s E.ON AG, Gazprom Export said.

“The agreement represents a compromise and a take on the modern trends of the development of the natural gas market into account,” Gazprom Export CEO Alexander Medvedev said.

Earlier this year, Gazprom reduced gas prices by 10% on average for GDF Suez, Wingas, SPP, and Botas under long-term contracts, which the gas giant prefers. But the companies said they could buy cheaper gas on the spot market which is now developing in Europe.